SALESFORCE INC (CRM) Fundamental Analysis & Valuation

NYSE:CRM • US79466L3024

Current stock price

164.96 USD
-5.89 (-3.45%)
At close:
164.75 USD
-0.21 (-0.13%)
After Hours:

This CRM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CRM Profitability Analysis

1.1 Basic Checks

  • In the past year CRM was profitable.
  • In the past year CRM had a positive cash flow from operations.
  • In the past 5 years CRM has always been profitable.
  • CRM had a positive operating cash flow in each of the past 5 years.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B

1.2 Ratios

  • CRM has a Return On Assets of 6.64%. This is in the better half of the industry: CRM outperforms 78.55% of its industry peers.
  • Looking at the Return On Equity, with a value of 12.61%, CRM is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
  • The Return On Invested Capital of CRM (9.59%) is better than 84.36% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CRM is below the industry average of 10.91%.
  • The 3 year average ROIC (8.16%) for CRM is below the current ROIC(9.59%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROIC 9.59%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8 10

1.3 Margins

  • CRM has a better Profit Margin (17.96%) than 84.73% of its industry peers.
  • In the last couple of years the Profit Margin of CRM has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 21.47%, CRM belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
  • CRM's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 77.68%, CRM is doing good in the industry, outperforming 74.18% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
Industry RankSector Rank
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. CRM Health Analysis

2.1 Basic Checks

  • CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for CRM has been reduced compared to 1 year ago.
  • Compared to 5 years ago, CRM has more shares outstanding
  • Compared to 1 year ago, CRM has a worse debt to assets ratio.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B 80B 100B

2.2 Solvency

  • CRM has an Altman-Z score of 2.53. This is not the best score and indicates that CRM is in the grey zone with still only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.53, CRM is doing good in the industry, outperforming 62.18% of the companies in the same industry.
  • CRM has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
  • CRM has a Debt to FCF ratio of 1.00. This is in the better half of the industry: CRM outperforms 74.18% of its industry peers.
  • A Debt/Equity ratio of 0.18 indicates that CRM is not too dependend on debt financing.
  • CRM's Debt to Equity ratio of 0.18 is in line compared to the rest of the industry. CRM outperforms 46.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Altman-Z 2.53
ROIC/WACC0.92
WACC10.38%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B

2.3 Liquidity

  • CRM has a Current Ratio of 0.76. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.76, CRM is doing worse than 87.27% of the companies in the same industry.
  • CRM has a Quick Ratio of 0.76. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.76, CRM is not doing good in the industry: 86.18% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. CRM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.16% over the past year.
  • Measured over the past years, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.60% on average per year.
  • The Revenue has grown by 9.58% in the past year. This is quite good.
  • The Revenue has been growing by 14.34% on average over the past years. This is quite good.
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%

3.2 Future

  • CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.19% yearly.
  • CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.78% yearly.
EPS Next Y6.23%
EPS Next 2Y9.28%
EPS Next 3Y11.45%
EPS Next 5Y12.19%
Revenue Next Year11.16%
Revenue Next 2Y10.32%
Revenue Next 3Y10.04%
Revenue Next 5Y9.78%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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Find the best growth stocksShow best growing peers

7

4. CRM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.14, which indicates a correct valuation of CRM.
  • Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a rather cheap valuation: CRM is cheaper than 81.45% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of CRM to the average of the S&P500 Index (26.86), we can say CRM is valued rather cheaply.
  • A Price/Forward Earnings ratio of 12.37 indicates a correct valuation of CRM.
  • CRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 77.82% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 37.39, CRM is valued rather cheaply.
Industry RankSector Rank
PE 13.14
Fwd PE 12.37
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • CRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRM is cheaper than 82.91% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CRM is valued cheaply inside the industry as 85.82% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.57
EV/EBITDA 12.34
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of CRM may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)0.64
EPS Next 2Y9.28%
EPS Next 3Y11.45%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. CRM Dividend Analysis

5.1 Amount

  • CRM has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
  • The stock price of CRM dropped by -36.54% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 0.65, CRM pays a better dividend. On top of this CRM pays more dividend than 92.00% of the companies listed in the same industry.
  • With a Dividend Yield of 1.03, CRM pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.03%

5.2 History

  • CRM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 21.28% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP21.28%
EPS Next 2Y9.28%
EPS Next 3Y11.45%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

CRM Fundamentals: All Metrics, Ratios and Statistics

SALESFORCE INC

NYSE:CRM (4/10/2026, 8:15:00 PM)

After market: 164.75 -0.21 (-0.13%)

164.96

-5.89 (-3.45%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-26
Inst Owners84.96%
Inst Owner Change0.02%
Ins Owners2.63%
Ins Owner Change1.17%
Market Cap152.26B
Revenue(TTM)41.52B
Net Income(TTM)7.46B
Analysts79.31
Price Target278.22 (68.66%)
Short Float %2.55%
Short Ratio1.65
Dividend
Industry RankSector Rank
Dividend Yield 1.03%
Yearly Dividend1.67
Dividend Growth(5Y)N/A
DP21.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.24%
Min EPS beat(2)12.59%
Max EPS beat(2)23.9%
EPS beat(4)4
Avg EPS beat(4)10.15%
Min EPS beat(4)0.37%
Max EPS beat(4)23.9%
EPS beat(8)7
Avg EPS beat(8)6.63%
EPS beat(12)11
Avg EPS beat(12)5.77%
EPS beat(16)15
Avg EPS beat(16)7.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.62%
Revenue beat(12)1
Avg Revenue beat(12)-0.53%
Revenue beat(16)2
Avg Revenue beat(16)-0.28%
PT rev (1m)-10.77%
PT rev (3m)-16.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)0.34%
EPS NY rev (3m)1.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 13.14
Fwd PE 12.37
P/S 3.67
P/FCF 10.57
P/OCF 10.15
P/B 2.57
P/tB N/A
EV/EBITDA 12.34
EPS(TTM)12.55
EY7.61%
EPS(NY)13.33
Fwd EY8.08%
FCF(TTM)15.6
FCFY9.46%
OCF(TTM)16.25
OCFY9.85%
SpS44.99
BVpS64.08
TBVpS-6.08
PEG (NY)2.11
PEG (5Y)0.64
Graham Number134.51
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROCE 11.86%
ROIC 9.59%
ROICexc 10.98%
ROICexgc 832.21%
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
FCFM 34.68%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
ROICexc(3y)9.79%
ROICexc(5y)6.53%
ROICexgc(3y)348.77%
ROICexgc(5y)217.21%
ROCE(3y)10.09%
ROCE(5y)6.73%
ROICexgc growth 3Y197.62%
ROICexgc growth 5Y168.58%
ROICexc growth 3Y64.12%
ROICexc growth 5Y61.34%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Debt/EBITDA 0.83
Cap/Depr 16.36%
Cap/Sales 1.43%
Interest Coverage 250
Cash Conversion 119.51%
Profit Quality 193.13%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 2.53
F-Score7
WACC10.38%
ROIC/WACC0.92
Cap/Depr(3y)17.96%
Cap/Depr(5y)19.34%
Cap/Sales(3y)1.76%
Cap/Sales(5y)2.11%
Profit Quality(3y)207.81%
Profit Quality(5y)804.88%
High Growth Momentum
Growth
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
EPS Next Y6.23%
EPS Next 2Y9.28%
EPS Next 3Y11.45%
EPS Next 5Y12.19%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%
Revenue Next Year11.16%
Revenue Next 2Y10.32%
Revenue Next 3Y10.04%
Revenue Next 5Y9.78%
EBIT growth 1Y16.32%
EBIT growth 3Y68.68%
EBIT growth 5Y81.32%
EBIT Next Year37.26%
EBIT Next 3Y16.98%
EBIT Next 5Y4.52%
FCF growth 1Y15.83%
FCF growth 3Y31.64%
FCF growth 5Y28.62%
OCF growth 1Y14.54%
OCF growth 3Y28.24%
OCF growth 5Y25.58%

SALESFORCE INC / CRM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CRM.


What is the valuation status for CRM stock?

ChartMill assigns a valuation rating of 7 / 10 to SALESFORCE INC (CRM). This can be considered as Undervalued.


What is the profitability of CRM stock?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the expected EPS growth for SALESFORCE INC (CRM) stock?

The Earnings per Share (EPS) of SALESFORCE INC (CRM) is expected to grow by 6.23% in the next year.


Is the dividend of SALESFORCE INC sustainable?

The dividend rating of SALESFORCE INC (CRM) is 3 / 10 and the dividend payout ratio is 21.28%.